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1.6 HENRY FAYOL'S ADMINISTRATIVE THEORY OF MANAGEMENT

Henry Fayol (1841-1925) was a French mining engineer who turned a leading industrialist
and a successful manager. He started his career as a mining engineer in a French mining company
and rose to the position of the Chief Managing Director.
After conducting many experiments and observations in organization, Fayol proposed
14 principles of management which are explained in his famous book 'General and Industrial
Administration'. Due to his contribution in development of managerial thoughts he is called as
'Father of Modern Management'. Fayol suggested 14 principles of management. These statements
serve as a guideline for decision-making and management actions.
14 principles are summarized as follows:

1) Principle of Division of Work
2) Principle of Authority and Responsibility
3) Principle of Discipline

4) Principle of Unity of Command
5) Principle of Unity of Direction
6) Principle of Subordination of Individual
Principles Interest to Organisational Interest
of Management 7) Principle of Centralization
8) Principle of Remuneration
9) Principle of Scalar Chain
10) Principle of Order

11) Principle of Equity
12) Principle of Stability of Tenure
13) Principle of Initiative
14) Principle of Esprit de corpse (Team work)

1) Principle of Division of Work:
According to this principle, the work is divided into different kinds such as technical, financial,
commercial, security operations, accounting and managerial. It is assigned to employees as
per their qualities and capabilities. It helps in improving efficiency and expertise of employees
which ultimately turns into expected productivity level.
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